GVC plays down “investor fury” rumours amid chairman exit plans
The London-listed operator describes recent news reports as “mischief making” but admits a succession plan for chairman Lee Feldman is underway
GVC has dismissed rumours that the proposed exit of chairman Lee Feldman has been sped along as a result of his recent stock sell-off.
Feldman shocked investors in early March when he cashed in on GVC stock, selling 900,000 shares in the business for £6m, while CEO Kenny Alexander sold more than two million shares for £13.7m.
The sale triggered a 16% fall in share price for GVC as it occurred just days after the London-listed operator reported its full-year results, in which revenues climbed 9% to £3.6bn.
GVC chairman Lee Feldman
Media reports over the weekend claimed that such was the level of “investor fury” at the duo’s stock sell-off, directors moved to accelerate the process of identifying Mr Feldman’s successor as a result.
GVC however has denied these claims, insisting that Feldman was always likely to step down in 2019 due to changes to UK Corporate Governance Code, which encourages chairs of listed companies to depart after nine years. Feldman has been at the helm of GVC since 2008.
A GVC source told EGR Intel that the operator’s senior independent director had only spoken to one investor since the results announcement and described news reports over the weekend as “mischief making” and “erroneous”.
EGR Intel also understands that Feldman’s official retirement date will only be determined once the GVC board has chosen a successor, with succession planning already well underway.